Kahneman's two thinking systems

Summary

As all decision-making emerges from the uncertainty, so does project management decisions. When trying to describing on the dynamics when assessing risk and reward, the lack of understanding the underlying rationale comes to mind. Daniel Kahneman(REF), an Israelian-American Nobel prize winning psychologist, tries to elaborate the existing literature on uncertainties in decision-making, by introducing a new scope.

This new scope takes its starting point in two systems used when evaluating a decision, system 1 and system 2.

System 1 or the fast thinking system is defined by quick responses, automation and irrational thinking.

System 2 or the slow thinking system is defined by thought through repsones and rational thinking.

Kahneman describes the two systems as interdependent. System 2 is a slave to system 1 due to the cognitive biases our everyday experiences and impressions have imprinted in the unconscious.

Kahneman argues that we make around 35.000 decisions everyday and system 1 makes around 98% of these decisions with fast unconscious decision-making [1], leaving 2% for the slow thinking system 2. This implies that large amount of the human decisions aren't rational or smart as one may think.

Big idea

Application: - HabitsLink title - shortcut decisions - Heavy for the brain in system 2

Limitations: - simplification. - reflections in the subconscious. -

Annotated bibliography